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by sokoloff 3387 days ago
Exactly!

If you owe a bank $10MM and you default on the loan, you have a problem.

If you owe a bank $10BB and you default on the loan, the bank has a problem.

1 comments

And if you owe bond holders a billion dollars and your company has a billion dollars in assets when it goes under, the bond holders get your company and the stock holders get nothing. Or perhaps the assets are sold to another party to pay off the bond holders and it's that other party that gets the company for the price of paying off the bond holders.